When a firm's long-run average cost curve is horizontal for a range of output, then that range of production displays
A) constant average fixed costs. B) decreasing returns to scale.
C) increasing returns to scale. D) constant returns to scale.
D
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In general, activists are ________ about the ability of the economy to remain stable and non-activists are ________
A) pessimistic; optimistic B) optimistic; optimistic C) pessimistic; pessimistic D) optimistic; pessimistic
When the U.S. decides to strengthen its border control, the labor market in California is affected. We would expect the:
A. demand for labor to decrease. B. supply of labor to increase. C. supply of labor to decrease. D. demand of labor to increase.
Figure 33-6
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If Figure 33-6 (a) illustrates the elimination of a recessionary gap, then the economy should move to what point on the curves shown in Figure 33-6 (b)?
A. From e to r B. From g to j C. From r to j D. From r to m
In the above figure, what is the equilibrium level of real consumption spending?
A. $2.0 trillion B. $3.0 trillion C. $0.0 trillion D. $1.0 trillion